Canada Conservative government reports a surplus of $9.7-billion
Paul Vieira, Financial PostPublished: Friday, May 25, 2007
OTTAWA -- Preliminary estimates from the Department of Finance indicate the country reported a budget surplus of $9.7-billion for the most recent fiscal year -- $500-million greater than what the Conservative government projected in the 2007 budget but not nearly as fat as the previous year.
That total, however, is not final, and is subject to adjustments in the coming months. Also, the data suggest that growth in spending outpaced and gains on the tax revenue side.
The data is available in the latest issue of the Fiscal Monitor, a monthly newsletter the Department of Finance publishes.
For the 2006-07 fiscal year, ended March 31, Ottawa pocketed $13.7-billion more than it dished out.
For the 2006-07 fiscal year, ended March 31, Ottawa pocketed $13.7-billion more than it dished out. But once costs associated with measures in the recent budget are deducted, the surplus comes in at $9.7-billion.
For the year, revenue rose 5% to $231-billion, reflecting robust growth in tax revenue, especially on the corporate side. Program expenses grew 5.2%, to $183.5-billion, due to higher transfer payments to the provinces and increased operating costs, particularly at National Defence.
Nevertheless, the Finance Department said the numbers do not reflect end-of-year adjustments, such as liabilities for which no payment has yet been made.
The end-of-year surplus goes toward paying down the debt.
For the 2005-06 fiscal year, the Conservative government recorded a $13.2-billion surplus.